Risk, Balanced Skills and Entrepreneurship

Authors

Chihmao Hsieh, University of Amsterdam
Simon C. Parker, Western University
C. Mirjam van Praag, University of Amsterdam

Document Type

Article

Publication Date

2017

Volume

48

Issue

2

Journal

Small Business Economics

First Page

287

URL with Digital Object Identifier

https://doi.org/10.1007/s11187-016-9785-y

Last Page

302

Abstract

This paper proposes that risk aversion encourages individuals to invest in balanced skill profiles, making them more likely to become entrepreneurs. By not having taken this possible linkage into account, previous research has underestimated the impacts both of risk aversion and balanced skills on the likelihood individuals choose entrepreneurship. Data on Dutch university graduates provides evidence which supports this contention. It thereby raises the possibility that even risk-averse people might be suited to entrepreneurship; and it may also help explain why prior research has generated mixed evidence about the effects of risk aversion on selection into entrepreneurship

Notes

This is an open access article which is available at https://doi.org/10.1007/s11187-016-9785-y

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 License.